Escrow

      An escrow is a trusted third party that handles the distribution of funds based on a contractual engagement.

     Escrowing is a way to protect the parties involved in a financial agreement. Whenever an entity goes to procure something they might not want pay the other party ahead of time because they are worried that the counterparty will not deliver what was promised. By employing an escrow, funds are locked out of both parties reaches until the contract is completed. If Both parties abide by what was agreed upon then the funds are released and goods are traded; if one of the parties does not deliver what was promised then the locked up funds are returned to their original owner.

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